independent contractor

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independent contractor

One who is hired to reach a certain goal or perform a certain task,but who has the ability and the right to determine the methods and times for reaching that goal or task,so long as it is not illegal and is within the limits of the contract.This is an important concept because

1. Employers must take withholding taxes and pay matching taxes for employees but not independent contractors. The IRS has significantly tightened the definition of indepen- dent contractor so that most work relationships do not qualify. Under certain circum- stances, real estate agents have been held to be employees for tax purposes.

2. If an independent contractor is negligent or commits an intentional tort, then the person who hired the contractor is not generally liable for the resulting damage. If an employee did the same thing, the employer would be liable so long as the employee was acting within the line and scope of his or her employment, which is usually a fairly easy hurdle for plaintiffs' lawyers to overcome.

3. An exception exists for the general rule of nonliability for the actions of an independent contractor, and that is in the area of real estate brokerage. Most real estate agents are independent contractors working for the broker. Real estate licensing laws, however, usu- ally hold the broker responsible for the actions of agents.

Independent Contractor

A taxpayer who contracts to do work according to his own methods and who is not subject to control except as to the results of such work. An employee, by contrast, is subject to the control of the employer as to the methods to be used to obtain the desired results.
References in periodicals archive ?
To the contrary, the providing of coverage, for an insured's contractual indemnity obligation, for another's tort liability, is a critical component of the CGL policy.
Thus, tort liability appears as a penalty under a general rule regulated by law, while civil contractual liability represents an application of the civil liability under a qualified hypothesis, namely that of prejudice resulting from the failure of a pre-existing contractual obligation (Anghel, Deak & Popa, 1970: 31).
We test this hypothesis using a large sample of automobile insurance claims from accidents occurring in 42 states over the period 1972-1997 when tort liability for insurer bad faith was expanding.
The risk that courts will succumb to the expansionary temptation, and respond to mandatory insurance statutes by adopting constitutionally invalid tort liability standards for gun owners, provides yet another reason for extreme care in drafting this type of legislation.
recognized that tort liability constitutes state action and is therefore
scholarly debate over the rationale for tort liability, with the
23) "[T]he threat of tort liability has the capacity to deter broadly.
Tort liability - looked upon as the common form of the civil liability - can be defined as one's legal obligation stemming from either a civil wrong, other than contractual ones, or injury for which a court remedy is justified.
Keep in mind that IICLE also provides some titles that include discussion of tort law as applied to specific entities, such as School Law (Illinois): Organization, Finance & Property (IICLE 2010) (providing chapters dealing with school district tort liability and civil rights litigation).
Exhibit A is the destructive synergy between administrative regulation on the one hand and tort liability on the other, regarding key questions of product design and product warnings.
Camp is also a shareholder in the Miami office of Carlton Fields and is a member of the firm's products and toxic tort liability and business litigation and trade regulation practice groups.